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0023 GMT [Dow Jones] STOCK CALL: Credit Suisse initiates Biosensors (B20.SG) at Outperform; sets S$1.30 target price. Says company's move to buy remaining 50% of JW Medical leaves it "poised to become a dominant Asian stent maker." Says company paying reasonable price for JW Medical, deal should provide big boost to earnings. Adds Biosensors expects to receive CE mark approval for BioMatrix product by the end of this month; "if and when the approval is granted, the share price should react positively." But notes company still has risks due to uncertainty on earnings outlook, execution of strategy. Stock closed +6.1% at S$0.960 yesterday. (KIG)
fyi
Hello huatah, let the price do the talking... is going to be a interesting day......... i suspect some one is on the wrong side of the trend..... wrong side against retailer is ok....but wrong side against BB is one big mistake
negative profit for many years, no dividend and high risk counter, is it worth 96 cents???
Pension.. I really dun understand wat's your rationale or biases towards tis counter. Seriously.. i strongly believe u r not in this bio or pharma industry.. despite havin explained.. u dun seems understand or u choose to b ignorance.
apparently.. i really think u should do your homework..
Haiz..
Biosensors International Group: Good foresight through JWMS acquisition (ocbc)
Summary: Biosensors International Group (Biosensors) announced
yesterday
that it will be acquiring the remaining 50% of leading China based
stent
maker, JWMS, in 2 phases. JWMS is valued at US$180m and dilution will
be
about 33%. Biosensorâ??s strong IP portfolio coupled with JWMSâ??
distribution
network and profitable Excel stent business put it as one of the
forerunners in the rapidly growing DES market in China. Biosensors and
JWMS
will now be able to address the whole spectrum of government tenders
with
both the Excel and soon to-be-approved Biomatrix DES. We update our
bottomline forecasts to factor in new margin information about JWMS and
Biosensors. Using standard medtech valuation (30% discount rate of
FY10F
net profit with average 30x peer PER), fair value is raised to S$1.40
(vs.
S$0.99). Maintain BUY.
Biosensors International Group Ltd. --------------Initiating coverage with OUTPERFORM
New report: poised to become a dominant Asian stent maker
TP: $1.30Jinsong Du / Research Analyst / 852 2101 6589 / jinsong.du@credit-suisse.com Justin Liu / Research Analyst / 852 2101 7350 / justin.liu@credit-suisse.com
●
at the back of breaking news. Biosensors, a Singapore-based
stent maker, announced yesterday that it would buy the remaining
50% ownership of JW Medical (not listed), a Chinese stent maker.
We initiate coverage on Biosensors with an OUTPERFORM rating
●
transaction valued JW Medical at 13x FY08E P/E, which is a 56%
discount to the average of overseas listed Chinese medical
devices companies?. We forecast JW Medical?s earnings to growth
at a CAGR of 40% from 2007-09.
Based on our estimates of JW Medical?s FY08E net income, the
●
MARK approval for BioMatrix by the end of January 2008. If and
when the approval is granted, the share price should react
positively. Biosensors? potential consolidation of the Asian stent
market should serve as a longer-term catalyst, in our view.
Biosensors announced on 26 December 2007 that it expects CE
●
upside. We are positive on the story but do acknowledge the high
uncertainty of earnings and execution risks. Thus we advise
investors to exercise caution.
Our DCF-based fair value of S$1.30 suggests 35% potential
Reasonable price paid for JW Medical and immediate boost to earnings
We estimated China?s stent market to be around US$300 mn and JW
Medical to have around 20% of the market share.
Biosensors has entered into an agreement with Shandong Weigao
(8199.HK, HK$16.80, Outperform, TP $19.00) to acquire 30% equity
interests of JW Medical for 120 mn new Biosensors shares. It will also
grant Weigao a put option to sell the remaining 20% equity interests of
JW Medical for 40 mn of new Biosensors hares.
Including an earlier 129 mn new ordinary Biosensors shares + US$10
mn in cash for the first 50% equity interest in JW Medical, the total
consideration for 100% acquisition of JW Medical involves 289 mn
new ordinary Biosensors shares and US$10 mn in cash. Thus the
total valuation of JW Medical is approximately US$180 mn.
Based on our estimates of JW Medical?s FY08E net income, the
transaction valued JW Medical at 13x FY08E P/E, which is a 56%
discount to the average of overseas listed Chinese medical devices
companies?. We forecast JW Medical?s earnings to growth at a CAGR
of 40% in 2007-09.
We suspect Shandong Weigao sold out due to the
partnership with Medtronic
Shandong Weigao recently formed a partnership with Medtronic (MDT,
$49.40, Neutral, TP $52.00), which also has a stent business. We
believe this could be one of the key reasons for Shandong Weigao to
sell out its stake in JW Medical. We also draw comfort from the fact
that Shandong Weigao agreed to settle the transaction in Biosensors
shares instead of cash, which we believe shows confidence in
Biosensors? future.
Asian stent market has the highest growth among all
regions
According to Millennium Research Group, the Asian stent market is
around US$700 mn, and is expected to grow at a CAGR exceeding
15% CAGR in the next three years, the highest growth among all
regions.
In recent months Biosensors accelerated its expansion effort in the
region. It set up an India operation, and acquired a stent distributor in
Indonesia, among other activities. We expect the company to continue
its expansion and potentially acquire key players in the region. With
the strategy to consolidate the industry and become a dominant Asian
stent maker, Biosensors should be well positioned to benefit from the
high growth potential in the Asian stent market.
DCF valuation with assumptions subject to significant
change
Based on a 3% terminal growth rate and a WACC of 10.50%, our
DCF-based fair value for Biosensors is S$1.30. We expect the
company to provide detailed financial guidance after it obtains the CE
MARK. Therefore, our current assumptions are subject to significant
changes.
Risks
Investment risks include timeline of CE MARK approval for BioMatrix,
changes in competitive landscape, regulatory changes, and safety
concerns, as well as execution of the BioMatrix launch.
OCBC revised target price --> $1.40
how many counters is now trading at their NTA? Go tell Cosco and YZJ s/h their shares are not worth it at >70 times P/E
go tell wilmar s/h, hey ur shares only worth less than $2.
Stocks is abt 90% speculation 10% value, especially in spore.
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somebody appologised for tp $1.25, make ppl out there loss money for his gain and juz say sorry, can he be trusted?. now he lower his tp but i have to warn u guy, this counter not worth 96 cents, please read financial report or consult your broker. i think he will appologise again. lol. wait and see. appology is free but u loss money is painful. |
When have i lowered my TP? My TP for BIG is at least $1.50 at end 2008 if no takeover. If takeover, it will be around $3
i am here to caution those newbie so they cannot be easy induced.
I think u are the one who is angry
T + 6 tommorrow. those who did not sell today and no cash to pick up the stock before 11am, ur broker house will force sell for u.
u can see how angry they are when i mentioned about financial report, losses, no dividend. one u are aware of it, u will not come in and they will not able to let go the hot potatoe to u.
this counter is not worth 96 cents, pls read it financial report or check with your broker. dun be induce by majority who try to paint a beautiful picture, why the stock dip, u going to pay for ur loss not them. do ur homework!
cannot tan hun this guy keep posting this kind of message
somebody appologised for tp $1.25, make ppl out there loss money for his gain and juz say sorry, can he be trusted?. now he lower his tp but i have to warn u guy, this counter not worth 96 cents, please read financial report or consult your broker. i think he will appologise again. lol. wait and see. appology is free but u loss money is painful.
Next week all the big banks in US will anounce their quarterly result. Expect loss due to write off or lower earning. Trade with care. if you buy this counter already dont chase anymore and sit back. I know greed will come in with all this good news and tend to chase the stock. But with the mkt sentiment like this better stay more liquid.
haha.. bengster.. u almost caught me speechless.. I thought u urging ppl to buy Jade.. and when read further.. then catch de ball.. lol.. me almost fainted while reading it..
Bro bengster.. dun have to explain further. tis counter will prove itself in due time. Lots of things r beyong our control. u have done a fantastic job, and u have given information no other members so far i had seen-so detail.
I get burn bcos of jade... but i dun blame anyone.. and i hope de rest here do likewise.
Let's throw out the past... and forward we move..
..look at Uniasia at $1.40 all short thinking it will crash..at $1.60many short again..see it went to $1.86..works of BB..they know U want $1 they may sell and give U heart attack but don't worry shd it drop below 90cts grab even >..won't die..just when U think it is expensive it will go higher